What a year that was. I didn't feel much like writing after the virus hit and who knows 2021 might bring more of the same. It will get worse. January and February along with the weather will be brutal.
Vaccine coming but molasses slow. Better days ahead?
What Can We Do?
Well I'm going to make sure my PFs are as tax efficient as can be. They are and have been for years. Max out your TFSA and RRSP as soon as you can because you can expect many changes to the tax structure after the spring budget.
Taxes are going up as the government will be looking everywhere to offset the massive spending plan they have planned for 2021.
I will be adding some silver coins and maybe some bitcoin to offset our portfolios of dividend growth stocks.
Why?
Simply as a hedge against this massive devaluing by central banks of our currency. Nothing more than 1% of our total net worth. I think this is prudent in todays climate.
Interest rates are in the ditch and as long as they are I believe a small diversified position is warranted. Even my dividend guru Tom Connolly has some old Canadian silver coins in his possession. I do too along with some physical bullion.
I don't know much about bitcoin but I'm becoming a believer. I need more study and just how to buy and where to store and keep it. Nothing crazy just a little at a time.
What's Trending?
I need to do more of this as there is more than one way to make money in this world. Would you buy coca-cola stock today? I am not Warren Buffett so the answer is no. He has lots bought when it was a thing. It's NOT anymore. I wouldn't even drink it or any soda out there. It's just shit.
But there are other ways to make money, increase income and build wealth. We know this truth yet are paralyzed to use different tools out there and leave our comfort zone.
So, one of my commitments to my investing self is to pay attention to trends and where the psychology of the market is taking money higher. I like to buy things when they are down and on sale in all walks of life.
When dividend paying stocks like the PIPELINES are down like now that is a place to look. I already own ENB, TRP and PPL.
I like but don't own IPL and KEY.
Telecom stocks are also data pipelines. They are a necessity and an essential service that is now getting government backing to have it installed everywhere humans live and congregate. These stocks are a must in any dividend portfolio. I own BCE, Telus and will be adding Shaw very soon.
Finally
With income generated by growing monthly and quarterly dividend paying stocks I am going to look at some different ways of deploying and protecting our money. I will also try and pay attention to what the youth of our day spends money on and what trends seem to be appearing on the investing landscape.
It is only arrogance that let's us ignore and dismiss other ways people use to make money investing.
What Buffett did and invested in 50 years just is old and tired today. He missed the tech boom because he didn't understand it. He bought Apple 15 years later but he eventually got on board. That's OK all I'm saying is for me is to pay attention. What's trending is my 2021 mantra.
Seek out those trends and explore if they are investable like marijuana stocks in 2003 when the government of Canada legalized it. Lots of easy money was made but not by me. I'm at a different head space now. Pay attention!
To sum up, most bloggers recommend more balanced portfolio nonsense or those new fangled one asset portfolios. Owning one asset is not a portfolio. You can keep costs at zero by buying individual stocks. I hate this balanced strategy.
I don't own bonds and would never buy any. They're just garbage in my opinion. Buy things that are down, trending up and pay you to own them. Keep searching and never stop.
Hedge with small positions in gold, silver and some bitcoin to protect purchasing power and your wealth. 1% of my net worth is my goal.
I hope 2021 is a roaring investing success for you!
